Ministry of Finance
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Director of private firm arrested by CGST Navi Mumbai for tax fraud to the tune of Rs 19 crores

Posted On: 30 JUL 2022 9:31AM by PIB Mumbai

: Mumbai, July 30, 2022

Director of M/s Omnipotent Industries Ltd (GSTIN: 27AACCO3769R1ZL) has been arrested by CGST, Navi Mumbai on the charges of availing and utilizing Input Tax Credit (ITC) which was received from bogus/fake entities amounting to Rs 19.51 Crores on Friday (29th July, 2022). 

A team of officers of Anti-Evasion, CGST & C.Ex. Navi Mumbai conducted enquiry against the aforesaid firm. The said firm has availed and utilized ITC of Rs. 19.51 crores which has been received from bogus/fake entities on the strength of invoices amounting more than Rs.120 Crore without supply of goods or services. It is pertinent to mention that two persons were already arrested in January 2022. However, the main beneficiary and the mastermind had been absconding for seven months till date to evade investigation proceedings. It appears that entire cartel of fake invoices was created to get company listed for raising fund through equity by M/s Omnipotent Industries Private Ltd.

As per the provisions of Section 132(1) (c) of the CGST Act, 2017, if taxpayer issues invoices and/or bills without supply of goods or services or both leading to wrongful availment or utilization of input tax credit, or avails input tax credit using such invoice or bill, the Section 132(1)(i) renders the taxpayer punishable with imprisonment for a term which may extend to five years and with fine. Further, as per Section 132(5) offences specified supra are cognizable and non-bailable.

The above accused has been arrested under Section 69 (1) of the Central Goods and Services Act, 2017 for committal of offences under Section 132 (1)(c) of the said Act and was produced before the Judicial Magistrate First class, Vashi at Belapur on 29.07.2022 and has been sent on judicial custody for 14 days, informed Commissioner of CGST and Central Excise in Navi Mumbai Shri Prabhat Kumar. 

During the financial year 2021-22, the CGST Navi Mumbai  Commissionerate had detected GST evasion of Rs. 543 Crore and recovered 41.47 Crore  arrested 16 tax evaders.

The officers of Central Intelligence Unit are using data analysis and network analysis tools to identify potential fraudsters and sharing the details with jurisdictional commissionerates for further investigation. This case is a part of the special drive launched by the CGST Mumbai Zone against the fraudsters and fake ITC network dealers.

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SC/Source: CGST and Central Excise, Navi Mumbai

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